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CIRCULAR

Amending and supplementing a number of articles of Circular No. 11/2014/TT-BTC of January 17, 2014, guiding a number of articles of the Government’s Decree No. 86/2013/ND-CP of July 29, 2013, on the business of prize-winning electronic games for foreigners

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Pursuant to the Government’s Decree No. 215/2013/ND-CP of December 23, 2013, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

Pursuant to the Government’s Decree No. 86/2013/ND-CP of July 29, 2013, on the business of prize-winning electronic games for foreigners;

Pursuant to the Government’s Decree No. 175/2016/ND-CP of December 30, 2016, amending and supplementing a number of articles of the Government’s Decree No. 86/2013/ND-CP of July 29, 2013, on the business of prize-winning electronic games for foreigners;

At the proposal of the Director of the Department of Finance of Banks and Financial Institutions;

The Minister of Finance promulgates the Circular amending and supplementing a number of articles of Circular No. 11/2014/TT-BTC of January 17, 2014, guiding a number of articles of the Government’s Decree No. 86/2013/ND-CP of July 29, 2013, on the business of prize-winning electronic games for foreigners.

Chapter I

GENERAL PROVISIONS

Article 1. To amend and supplement a number of articles of Circular No. 11/2014/TT-BTC of January 17, 2014, guiding a number of articles of the Government’s Decree No. 86/2013/ND-CP of July 29, 2013, on the business of prize-winning electronic games for foreigners, as follows:

1. To amend Article 1 as follows:

“Article 1. Scope of regulation

This Circular guides a number of articles of the Government’s Decree No. 86/2013/ND-CP of July 29, 2013, on the business of prize-winning electronic games for foreigners (below referred to as Decree No. 86/2013/ND-CP), and Decree No. 175/2016/ND-CP of December 30, 2016, amending and supplementing a number of articles of the Government’s Decree No. 86/2013/ND-CP of July 29, 2013, on the business of prize-winning electronic games for foreigners (below referred to as Decree No. 175/2016/ND-CP).”

2. To amend Article 3 as follows:

“Article 3. Business facilities

1. An enterprise engaged in the business of prize-winning electronic games for foreigners (below referred to as enterprise) shall locate its business facility for prize-winning electronic games under Article 5 of Decree No. 86/2013/ND-CP, and Clause 2, Article 1 of Decree No. 175/2016/ND-CP.

2. An enterprise shall install electronic equipment and a camera system for constant monitoring and surveillance of all activities in its business facility (24/24h), ensuring monitoring of the following key positions:

a/ Entrance and exit doors of the business facility;

b/ Areas where prize-winning electronic game machines are placed, for monitoring activities of players at each machine;

c/ Cashier counters and vaults for tallying cash and tokens and keeping equipment containing cash and tokens.

3. All footages recording the positions specified in Clause 2 of this Article shall be fully preserved for at least thirty (30) days from the date of recording. In case of necessity, the preservation duration may be longer at the request of competent state management agencies.

4. Enterprises shall elaborate regulations on security surveillance and monitoring of their business facilities, clearly specifying areas subject to security surveillance and monitoring, areas of preservation of records and footages, and persons permitted to enter and leave areas subject to security surveillance and monitoring.

5. Enterprises shall provide their regulations, documents, records and footages to competent state management agencies in the course of management, surveillance, examination and inspection.”

3. To amend Article 5 as follows:

“Article 5. Number and types of prize-winning electronic game machines and categories of prize-winning electronic games

1. An enterprise may decide on the number of prize-winning electronic game machines which it actually operates but such number must not exceed the maximum number of prize-winning electronic game machines specified in its business eligibility certificate or in Clause 16, Article 1 of Decree No. 175/2016/ND-CP.

2. Based on the number of prize-winning electronic game machines which it actually operates, an enterprise may choose the types of machines, categories of prize-winning electronic games and the percentage of prize-winning electronic game machines according to Appendix 01 to this Circular.

3. Within five (5) working days from the date an enterprise commences the business of prize-winning electronic games, it shall report in writing on the number and types of machines, categories of prize-winning electronic games and percentage of prize-winning electronic game machines it actually operates to the Ministry of Finance, provincial-level Finance Department, provincial-level Culture, Sports and Tourism Department, and Tax Department for monitoring and management.

4. In the course of business operation, an enterprise may change the number and types of prize-winning electronic game machines, categories of prize-winning electronic games and percentage of prize-winning electronic game machines but shall comply with the provisions on the number and types of prize-winning electronic game machines, categories of prize-winning electronic games and percentage of prize-winning electronic game machines of this Circular and Decree No. 175/2016/ND-CP, and other relevant laws.

In case of changing the number and types of prize-winning electronic game machines, categories of prize-winning electronic games and percentage of prize-winning electronic game machines, within five (5) working days after making such change, an enterprise shall report it in writing to the Ministry of Finance, provincial-level Finance Department, provincial-level Culture, Sports and Tourism Department, and Tax Department for monitoring and management.”

4. To amend Article 6 as follows:

“Article 6. Management of tokens

1. Tokens used in lieu of cash in prize-winning electronic game business facilities of an enterprise may take the following forms:

a/ Chip coin;

b/ Card, bill;

c/ Convertible point;

d/ Other forms of cash replacement as prescribed by the enterprise.

2. Tokens specified at Points a and b, Clause 1 of this Article must have the following basic information:

a/ Name or symbol of the enterprise;

b/ Code and sign of the token;

c/ Par value of the token;

d/ Name and mark of the manufacturer or supplier (if any);

dd/ Other information according to management requirements of the enterprise.

3. At least five (5) working days before putting tokens into business, an enterprise shall register the form, model, quantity and type of such tokens with the provincial-level Finance Department and the local tax agency directly managing the enterprise for monitoring and management.

4. An enterprise may suspend the use of tokens registered with the state management agencies specified in Clause 3 of this Article according to its management requirements. At least five (5) working days before suspending the use of tokens, the enterprise shall notify such in writing to the above agencies. A notification must clearly state the time of suspension, reason(s) for suspension and expected time of resumption of the use of tokens. In case of a change in the expected time of resumption of the use of tokens, the enterprise shall notify such in writing to the above agencies.

5. An enterprise shall keep a book for monitoring and management of its tokens, which must contain the following basic details:

a/ Form of tokens;

b/ Quantity and type of tokens which the enterprise has purchased, re-exported or destroyed, classified by par value and foreign currency, date of purchase, re-export or destruction, and name of manufacturer or supplier (if any), for tokens specified at Points a and b, Clause 1 of this Article;

c/ Other details according to management requirements of the enterprise.

6. The purchase, re-export or destruction of tokens must comply with Article 14 of Decree No. 86/2013/ND-CP; Clause 4, Article 1 of Decree No. 175/2016/ND-CP; Article 8 of this Circular, and relevant regulations.”

5. To amend Article 7 as follows:

“Article 7. Management of spare parts of prize-winning electronic game machines

1. Only enterprises having business eligibility certificates and enterprises certified in Clause 16, Article 1 of Decree No. 175/2016/ND-CP may purchase spare parts of prize-winning electronic game machines for replacement when necessary under Clause 3, Article 14 of Decree No. 86/2013/ND-CP.

2. Spare parts of prize-winning electronic game machines which enterprises may purchase include:

a/ Monitors;

b/ Cash and token receipt system;

c/ Payout system;

d/ Storage system;

dd/ Circuit boards.

3. The quantity of each spare part specified in Clause 2 of this Article must not exceed 10% of the total quantity of same-type parts of prize-winning electronic game machines actually operated by the enterprise.

4. Spare parts of prize-winning electronic game machines specified in Clause 2 of this Article must be brand-new.

5. An enterprise shall keep a book for management of each spare part of prize-winning electronic game machines, which must have the following basic details:

a/ Specific quantity and type of the spare part of prize-winning electronic game machines which the enterprise has purchased, re-exported or destroyed;

b/ Date of purchase, re-export or destruction;

c/ Name of manufacturer or supplier;

d/ Sign (serial number) of the part (if any);

dd/ Year of manufacture;

e/ Year of expiry (if any);

g/ Date of commissioning;

h/ Reason for commissioning.

6. When replacing spare parts of prize-winning electronic game machines, an enterprise shall make a written record clearly stating machines having parts to be replaced, replaced parts and reason for replacement.

7. The replacement with spare parts must adhere to the following principles:

a/ It does not affect the minimum payout percentage specified in Clause 3, Article 1 of Decree No. 175/2016/ND-CP;

b/ It does not lead to an increase in the quantity and types of prize-winning electronic game machines and categories of prize-winning electronic games licensed for business.”

6. To amend Article 12 as follows:

“Article 12. Dossier and procedures for grant of business eligibility certificates

1. Enterprises that fully satisfy the conditions prescribed in Article 19 of Decree No. 86/2013/ND-CP, and Clause 6, Article 1 of Decree No. 175/2016/ND-CP may be considered for grant of business eligibility certificates. The dossier, procedures and contents of examination and consideration for grant of a business eligibility certificate must comply with Articles 20 and 21 of Decree No. 86/2013/ND-CP, and Clauses 7 and 8, Article 1 of Decree No. 175/2016/ND-CP, in which the application for a business eligibility certificate shall be made according to the form provided in Appendix 03 to this Circular.

2. When considering granting a business eligibility certificate for an enterprise mentioned in Clause 1 of this Article, the Ministry of Finance shall base itself on the total number of rooms the tourist accommodation establishment actually used in its business to determine the number of prize-winning electronic game machines under Clause 1, Article 7 of Decree No. 86/2013/ND-CP.

3. Certificates of eligibility for business of prize-winning electronic games shall be granted by the Ministry of Finance and made according to the form provided in Appendix 05 to this Circular.”

7. To amend Article 13 as follows:

“Article 13. Dossiers and procedures for re-grant of business eligibility certificates

1. A dossier of application for re-grant of a business eligibility certificate in the cases specified in Clause 1, Article 23 of Decree No. 86/2013/ND-CP must comprise:

a/ An application for re-grant of a business eligibility certificate, made according to the form provided in Appendix 04 to this Circular;

b/ A certified copy or a copy enclosed with the original for comparison of the valid investment registration certificate or enterprise registration certificate granted by a competent state management agency;

c/ A certified copy of the business eligibility certificate of the enterprise which is lost, missing or damaged (if any).

2. Procedures for re-grant of a business eligibility certificate

Within fifteen (15) working days after receiving a complete and valid dossier of an enterprise made under Clause 1 of this Article, the Ministry of Finance shall re-grant the business eligibility certificate to the enterprise under Clause 1, Article 23 of Decree No. 86/2013/ND-CP.

3. The validity duration of a re-granted business eligibility certificate is the remaining operation duration of the enterprise stated in the last granted, re-granted or modified business eligibility certificate.”

8. To amend Article 14 as follows:

“Article 14. Dossier and procedures for modification of business eligibility certificates

1. A dossier of request for modification of a business eligibility certificate in the cases specified in Clause 2, Article 23 of Decree No. 86/2013/ND-CP must comprise:

a/ A written request for modification of a business eligibility certificate, made according to the form provided in Appendix 04 to this Circular;

b/ A certified copy or a copy enclosed with the original for comparison of the valid investment registration certificate or enterprise registration certificate granted by a competent state management agency;

c/ A certified copy or a copy enclosed with the original for comparison of the business eligibility certificate;

d/ Documents proving the modified contents of the business eligibility certificate in compliance with Clause 2, Article 23 of Decree No. 86/2013/ND-CP and relevant provisions of law.

2. Procedures for modification of a business eligibility certificate

Within thirty (30) working days after receiving a complete and valid dossier made by an enterprise under Clause 1 of this Article, the Ministry of Finance shall grant the modified business eligibility certificate to the enterprise under Clause 2, Article 23 of Decree No. 86/2013/ND-CP.

3. The validity duration of a modified business eligibility certificate is the remaining operation duration of the enterprise stated in the last granted, re-granted or modified business eligibility certificate.”

9. To amend Article 15 as follows:

“Article 15. Dossier and procedures for extension of business eligibility certificates

1. A dossier of request for extension of a business eligibility certificate in the cases specified in Clause 3, Article 23 of Decree No. 86/2013/ND-CP must comprise:

a/ A written request for extension of a business eligibility certificate, made according to the form provided in Appendix 04 to this Circular;

b/ A certified copy or a copy enclosed with the original for comparison of the business eligibility certificate which remains valid at least six (6) months before the date of submission of the request;

c/ The documents specified in Clauses 4, 5, 7 and 8, Article 20 of Decree No. 86/2013/ND-CP, and Clause 7, Article 1 of Decree No. 175/2016/ND-CP;

d/ Certified copies or copies enclosed with the originals produced for comparison of the written records of the examining agency’s conclusions on satisfaction of the business conditions in the periodical examinations under Clause 12, Article 1 of Decree No. 175/2016/ND-CP, and Point b, Clause 3, Article 33 of Decree No. 86/2013/ND-CP.

dd/ A business plan with the following principal contents:

- The situation of the business of prize-winning electronic games before the time of submission of the dossier of request for extension of the business eligibility certificate, specifying the maximum number of prize-winning electronic game machines permitted for use in the business, information on the business facility (location and area), number and types of prize-winning electronic game machines and categories of prize-winning electronic games which the enterprise is actually operating, results of the business of prize-winning electronic games of the enterprise in the last three (3) years up to the time of submission of the dossier (turnover, expenses, profits and state budget remittances) and observance of the law on the business of prize-winning electronic games during the business duration;

- The tentative business plan for the coming time, specifying the number and types of prize-winning electronic game machines and categories of prize-winning electronic games proposed for business, estimated turnover, expenses, profits, foreign-currency revenues and expenditures, measures to ensure security, social order and safety in the business facility, the proposed extension, implementation plan and the enterprise’s commitment to observe the provisions of law concerning the business of prize-winning electronic games in the coming time.

2. The procedures for extension of business eligibility certificates must comply with Clauses 1, 2 and 3, Article 21 of Decree No. 86/2013/ND-CP.

3. The Ministry of Finance shall assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment, Ministry of Culture, Sports and Tourism, Ministry of Public Security, State Bank of Vietnam, and provincial-level People’s Committees of the localities where enterprises conduct the business of prize-winning electronic games in, examining dossiers of application for extension of business eligibility certificates against the conditions prescribed at Point b, Clause 3, Article 23 of Decree No. 86/2013/ND-CP.”

10. To amend Article 16 as follows:

“Article 16. Fees for grant, re-grant, modification and extension of business eligibility certificates

1. The fee for grant or extension of a business eligibility certificate of an enterprise is VND 150,000,000.

2. The fee for re-grant or modification of a business eligibility certificate of an enterprise is VND 20,000,000.

3. The fees for grant, re-grant, modification and extension of business eligibility certificates under Clauses 1 and 2 of this Article are revenues of the state budget.

4. After examining an enterprise’s satisfaction of the conditions for the grant, re-grant, modification or extension of a business eligibility certificate, the Ministry of Finance shall send a notice to the enterprise for fee payment in accordance with law.

5. After receiving a notice of the Ministry of Finance, an enterprise shall pay the fee into the state budget according to the current state budget index provided in the Ministry of Finance’s Circular No. 328/2016/TT-BTC of December 26, 2016, guiding the collection and management of state budget revenues via the State Treasury, and replacing, amending or supplementing documents (if any), and send one (1) sheet of the fee receipt to the Ministry of Finance. An enterprise may be granted or re-granted a business eligibility certificate or have it modified or extended only after paying the fee into the state budget.”

11. To amend Article 29 as follows:

“Article 29. Transitional provision

Enterprises specified in Clause 16, Article 1 of Decree No. 175/2016/ND-CP that are organizing the business of prize-winning electronic games may continue to operate prize-winning electronic game machines which have been purchased in compliance of the relevant regulations in different periods until they are replaced by new ones. The replacement of old machines with new ones must comply with Decree No. 86/2013/ND-CP, Decree No. 175/2016/ND-CP, and this Circular.”

Article 2. To annul Articles 9 and 10 of Circular No. 11/2014/TT-BTC of January 17, 2014, guiding a number of articles of the Government’s Decree No. 86/2013/ND-CP of July 29, 2013, on the business of prize-winning electronic games for foreigners.

Article 3. Implementation provisions

1. This Circular takes effect on July 17, 2017.

2. Any problems arising in the course of implementation should be reported to the Ministry of Finance for consideration and settlement./.